Entity Planning and Formation

What I commonly hear from new clients (not my wise clients, however) is:
“I have been operating my business without any problem for years just by myself. I don’t really think that there is any need to spend money on changing that now. My friends all tell me that an LLC or corporation is over-rated. They had their lawyers each form one, and it’s not doing them any good. In fact, they are now sorry that they spent the money and time.”

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And the response to that is that if by some random chance, lightening strikes and you do have a business problem with someone who is unhappy with your service or product, poofo presto, there goes your personal assets (that beautiful Swiss ski chalet, the sleek Lear jet, the beautiful red Ferrari and the vacation home on the French Riviera.) Or, what about your savings account, your personal residence, your child’s educational fund, and anything else that you have of value.

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The job of strategic planning is to set your business up to be a business. Are you pursuing a hobby that makes you a few dollars each year? Is that your “business?”

Of course not. Most hobbyists are not even looking for legal assistance. The fact that you are here now indicates that you are one of the lucky and/or wise ones who wants to make their endeavor a real business!

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And, the formation of a strong entity and choosing which one is the best for you is a significant part of the strategic planning. And who are your early or continuing employees and/or independent contractors with whom you deal in need of contracts?

Do not run your business by the “ready, fire, aim” method of business management!